September Farm Bill FYI with SD Corn Executive Director, DaNita Murray

Welcome to Corn Comments, brought to you by the South Dakota Corn Utilization Council, a group of volunteer farmers working to market and promote corn here in this state, the US and around the globe. I’m DaNita Murray, Executive Director for South Dakota Corn.

We’ve talked about the Congressional Budget Office and how they impact the farm bill. CBO is responsible for putting a price tag on legislation over a 10 year window, and to do so, their economists use formulas to project prices for commodities, such as corn and soy, into the future. Currently, those formulas assume a somewhat cyclical outlook for prices, with both corn and soy prices projected to decrease in the out years, such as 2027. Is that an accurate outlook for soy? It may not be, in light of the significant increase in crushing capabilities slated for the western US. Is that an accurate outlook for corn? Arguably, farmers may forgo raising corn if the price is too low.

Food for thought. This has been another farm bill FYI. Thanks for listening!